Overview

Most of the Allowances tab fields contain allowances used in Transaction View for superannuation contribution calculations. However, you can use the Values (%) – Employee (%) as a default value when you create an Employee Super Fund record. Payroll rules can reference these allowance codes to generate superannuation transactions.

These fields are not mandatory, but you must enter the relevant allowance codes if you want PayGlobal to generate that type of superannuation allowance. If you leave any of these fields blank, then:

• The corresponding allowance field will be disabled in Employee Super Funds records associated with this superannuation fund.
• PayGlobal cannot generate superannuation transactions for that allowance for employees attached to this superannuation fund.

  Important: You can select only allowances that have Details (iv) tab | Superannuation allowance = "Yes".

Fields

Employer (%):

Z-type allowance that creates the employer's percentage value.

Note: If you try to enter the same allowance code in another field, then a warning appears, and you have to change the code.

Employer ($):

Z-type allowance that creates the employer's fixed value.

Salary Sacrifice All (%):

Z-type allowance that creates the salary sacrifice percentage value.

Salary Sacrifice All ($):

Z-type allowance that creates the salary sacrifice fixed value.

Values (%) - Employer (%):

Employer’s percentage contribution for this superannuation fund.

When you create a Superannuation Fund record with KiwiSaver status = "KiwiSaver scheme" or "Complying fund", the default Employer (%) value is the KiwiSaver | Details tab | Minimum employer contribution rate.

When you create an Employee Super Funds record you can copy across this value, and then manually adjust it if required.

The Employee Super Funds | Allowances tab | Employer (%) value overrides the Superannuation Fund | Allowances tab | Employer (%) value. If the Employee Super Funds value is zero or blank and the Superannuation Fund value is 3.000000, then PayGlobal uses the Employee Super Funds value so the payroll rule does not generate any employer allowance transactions.

Note: Running the KiwiSaver Update Tool does not update the Values (%) - Employer (%) value. You must manually edit this value in the Superannuation Fund record.

Values (%) - Top up ESCT (%):

From 01/04/2012, all employer contributions to an employee's KiwiSaver scheme or complying fund are liable for Employer Superannuation Contribution Tax (ESCT). The ESCT exemption on the first 2% of employer contributions no longer applies. Employers may decide to top up their contributions so employees still receive 2% after ESCT is deducted. Alternatively, employment agreements may require the employer to top up their contributions.

When you create an Employee Super Funds record and opt to "Copy across SuperFund defaults", the Top up ESCT (%) value ("Yes" or "No") is copied into the Employee Super Funds | Allowances tab | Employer (%) field.